Category: <span>Blog</span>

Risk Capacity and Risk Tolerance Are Different Beasts

Just because you have a high level of tolerance for risk does not mean that you have the same level of capacity for risk. These are quite different concepts and I am suggesting that as investors we should understand the difference. In this post I will explain my interpretation of the two types of risk. Risk Tolerance Risk tolerance is the what most investors are used to thinking and reading about. It is that "can I sleep at night" principle that we often read about. If you buy a …

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Which Sectors Do Dividend ETFs Invest In?

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If you are building a portfolio of individual securities, then the sectors you invest in should be part of your overall asset allocation plan. Recently I ran a post which energy companies are most predominant in a few dividend ETFs. I took this analysis one step further and tried to dissect what sectors dividend ETFs had represented. I do this to assist my own portfolio building process and asset allocation decisions - I want to make sure I have managed the risk appropriately in my portfolio …

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What Music Band Nine Inch Nails Taught Me About Investing

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Trent Reznor of Nine Inch Nails (NIN) fame kicked some music label butt in this past couple of weeks by releasing a 36 track album on his own using only the web as a means of distribution. He racked up sales of a cool $1.6 million. I think this is a strong message for the record companies that things are changing and the middle-man is not required anymore. As usual, I looked at this from an individual investor perspective and came away with this learning: The more people involved with …

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